Published On : February 2018
Nylon Cable Ties Market
Gone are the days when airplane wiring used to be inconvenient, involving hundreds of feet of wire which was very difficult task in a limited space. This scenario results into further complexities – that’s how cable ties came into existence. Initially, the nylon cable ties were made of metal, but the cost effectiveness of nylon over metal gives birth to nylon cable ties. The market consist of several types of cable ties including stainless steel cable ties, nylon cable ties (natural), UV protected cable ties, metal detectable cable ties, blank flag cable ties, and releasable cable ties. Nylon cable ties offers ease during the use and are very convenient for a wide range of applications in various end use industries. This factor itself supports the growth of this market.
Increasing application scope: how does it influence the market growth?
Cable ties were initially developed to be used in electronics and electrical industry to hold the cables together, for the purpose of simplification in day to day applications. This industry has been a primary application area for cable ties wherein they are used extensively. Although, the convenience offered by these cable ties and ease during the use has resulted in its increasing application scope. The application scope of nylon cable ties covers agriculture, consumer goods, automotive, building & construction, industrial, and others.
Nylon cables ties are one of the largely used cable ties and its widening application scope is getting traction in terms of market demand. As the market represented limited number in terms of global consumption, its growing adoption is anticipated to provide productive growth offerings. As per the analysis, building & construction, agriculture and consumer goods are the emerging consumers of nylon cable ties, due to which the market could see enhanced gains for nylon cable ties in the coming years. According to International Trade Association, consumer goods industry is poised to grow beyond USD 850 billion by 2020, with a significant CAGR. Taking into account the prolific growth in this industry, key players such as Nestle AG, Procter & Gamble, PepsiCo, and Unilever are seen investing a huge amount in production expansion to cater the ongoing demand. This, altogether has resulted into increasing packaging applications of nylon cable ties and ultimately driving the demand.
Surge in construction repair activities in North America: An opportunity
Nylon cable ties are seen being increasingly adopted in building & construction activities in various niche applications. Therefore, increasing construction projects to support the demand of nylon cable ties. North America region has presence of established building & construction industry, thus, there is less potential scope new projects in this region. However, it has been seen that, construction repair activities are increasing in this region year by year and consequently favorable fund policies by government is providing fuel for the growth for these projects. This has led to increased focus of key industry players of nylon cable ties market to this region and has led them to come up better product customization for specialty applications. Therefore, a drastic increase in such repair activities resulted into product innovation and also driving the demand for nylon cable ties.
As per the analysis, budget blueprint released in March 2017 has clearly demonstrated a new foundation of America infrastructure insights. The budget includes combination of new federal funding and incentivized non-federal funding, these funds will be directly offered to the infrastructure projects. Due to these favorable funding policies, the construction industry expected to offer enhanced gains for nylon cable ties in the near future.
Low initial investment: way to supreme market competition
Nylon cable ties are very economic and cost effective in nature and are produced in mass quantity. Their production is being undertaken at relatively low cost and therefore, the market could never see demand supply gap as per the industry experts. As its production is carried out at lower costs, the operating costs will be decreased automatically, and the profit margins will be raised wisely. Due to this factor, the global market is already experiencing the emergence of small-scale and mid-scale enterprises. The annual growth observed in global nylon cable ties market is also productive and it is projected to rise in the coming years.
The global nylon cable ties market does not consist of any of established Tier-1 enterprise and is highly fragmented in nature. Most of the industry players operating in this market are mid-scale and small-scale. In addition to this, the market entry barriers observed in this market are also low with relatively low initial investment. This could promote existing market players to invest in new technology and in product innovation to extend the market growth. On the other hand, to enjoy the profitability in this market, several new players are expected to penetrate this market thereby resulting in greater industry competition.
Due to aforementioned market scenario, it can be concluded that several investments have made to expand the growth of this market. Industrial expansion including construction and consumer goods has led to market penetration of a couple of small industry players.